For 2027 you can give up to $20,000 to any one person without reporting it, up from $19,000 in 2026. Gifts above that are reported on IRS Form 709, but you only owe gift tax once your lifetime total passes the estate tax exclusion, $15.48 million per person in 2027.
Annual exclusion and lifetime exclusion by year
| Year | Annual exclusion per person | Married couple splitting gifts | Lifetime gift and estate exclusion | IRS source |
|---|---|---|---|---|
| 2027 | $20,000 | $40,000 | $15.48 million | Rev. Proc. 2026-35 |
| 2026 | $19,000 | $38,000 | $15 million | Rev. Proc. 2025-32 |
| 2025 | $19,000 | $38,000 | $13.99 million | Rev. Proc. 2024-40 |
| 2024 | $18,000 | $36,000 | $13.61 million | Rev. Proc. 2023-34 |
| 2023 | $17,000 | $34,000 | $12.92 million | Rev. Proc. 2022-38 |
| 2022 | $16,000 | $32,000 | $12.06 million | Rev. Proc. 2021-45 |
| 2021 | $15,000 | $30,000 | $11.7 million | Rev. Proc. 2020-45 |
| 2020 | $15,000 | $30,000 | $11.58 million | Rev. Proc. 2019-44 |
| 2019 | $15,000 | $30,000 | $11.4 million | Rev. Proc. 2018-57 |
| 2018 | $15,000 | $30,000 | $11.18 million | Rev. Proc. 2018-18 |
| 2017 | $14,000 | $28,000 | $5.49 million | Rev. Proc. 2016-55 |
| 2016 | $14,000 | $28,000 | $5.45 million | Rev. Proc. 2015-53 |
| 2015 | $14,000 | $28,000 | $5.43 million | Rev. Proc. 2014-61 |
The annual exclusion only rises in $1,000 steps, so it often stays the same for several years. The lifetime exclusion doubled in 2018 under the 2017 tax law and was set at $15 million for 2026 by the 2025 tax law, rising with inflation after that. Checked November 7, 2026.
Why the year of the gift matters
The exclusion that applies is the one for the year you made the gift, not the year you file or the current year. If you gave a child $18,000 in 2024, that was exactly the 2024 limit, so nothing needs to be reported. The same gift in 2022, when the limit was $16,000, would have been $2,000 over and needed a Form 709 for 2022.
This is also why people look back at old years: to fill in a late Form 709, to add up past taxable gifts for the lifetime total, or to work out what an estate has already used up.
When you need to file Form 709
- You gave more than the annual exclusion to any one person in the year (other than your spouse, if they are a U.S. citizen).
- You and your spouse want to split gifts, so that a $40,000 gift counts as $20,000 from each of you. Splitting is chosen on Form 709, with your spouse’s consent, so a return is needed even when no tax is due.
- You gave a future interest, such as a gift into most trusts, which does not qualify for the annual exclusion at any amount.
Form 709 is due April 15 of the year after the gift, the same day as your income tax return. An extension for your income tax return also extends the time to file Form 709. Filing it usually means no tax is owed: the amount over the exclusion is simply subtracted from your lifetime exclusion.
What does not count as a gift
- Tuition paid straight to a school, and medical bills paid straight to the provider, at any amount.
- Gifts to a spouse who is a U.S. citizen. For a spouse who is not a citizen, the yearly limit is $194,000 for 2026 and $201,000 for 2027.
- Gifts to a political organization and to qualifying charities.
Gifts, loans and property transfers
Lending money to family instead of giving it? A written promissory note or personal loan agreement with real repayment terms helps show it was a loan and not a gift. Giving someone a share of a house with a quitclaim deed can be a gift too, valued at the share’s market value. For larger estates, an estate planning attorney can help, and our last will and testament template covers the basics.